INVESTMENTS

Internal Controls Imposed by Test of Controls audit Substantive Procedures

Area the Management procedures that can that can be imposed by the
imposed by the Auditor auditor
Throughout the past years, the • Checking whether • Review board
Investments the company is
Company has advanced the minutes to ensure that
maintaining an
procedure of investment investment investments have
register
appraisal which safeguards the been authorized by
involvement of the relevant • Inspection the board and the
individuals when capital whether the return investment
of investments is
investment decisions are being closely monitored committee.
made. In this manner, numerous with relevant
• Verify rights and
agreements by a
perspectives, opinions and specific team. obligations of the
assistances are attained prior to investments.
• Preparing
the investment decision being • Examine the
Standard
made. Experience has proven documentation of
Operating
that an all-inclusive and well investments.
procedures by
debated view of the commercial • Physical inspection of
delegating the
feasibility and potential of the investment
authority to
planned projects including properties to identify
approving new
operational, financial, funding, the physical condition
investments
risk and tax implications has
of the properties.
most of the time culminated a
good result.
 All investment decisions are
routed through a committee
structure which safeguards
against one individual
having unfettered
decisionmaking powers in
such
decisions. When the decisions
made by the committee is strong
and accurate company can
minimize the material
misstatement risk.
 1. INCOME TAX
Internal Controls Imposed by Test of Controls audit Substantive Procedures
the Management that can be imposed by the
procedures that can
Area auditor
imposed by the Auditor
Income Tax Ensure the book to actual • Checking the Examining documentation
adjustment has been made approval of the tax indicating that a suitable
accurately. Company’s tax manager (or someone procedure was performed
process ensure that two separate with sound when reporting Income tax
adjustments are recorded as knowledge in related details
prior year’s tax provision taxation) of the Verify obligations related to
estimate to tax return filed company before the income tax and cross
adjustment and prior year’s tax doing any kind of check the computation of
return filed to the assessed payment (assumed income tax.
amount. that the income tax

Designing and implementing has been outsourced

effective internal control to to a tax consultancy

prevent tax avoidance actions in firm)

desecration of tax regulations

imposed by inland revenue Act • Checking all

No.10 of 2006. the self-

Performing Tax Plan assessment

Implementation review which payment slips

ensure that tax plans manually before
implemented have been doing the final
appropriately authorized, payment.
executed and measured.
 Company ensure that the • Checking the
income tax balances are maintaining a tax
recorded according to
calendar
generally accepted
accounting principles by
maintenance of adequate
documentation which can be
supported to the recorded
amounts correctly at the time of
the institutional audit.